Lacking bite? The FCA has previously been accused of going easy on banks

Fines imposed by the financial regulator dropped 37 per cent last year, research shows.

Firms were hit with bills of £880million by the Financial Conduct Authority in 2015, compared to £1.4billion a year earlier, according to figures from law firm Clyde & Co.

Over the period there were just two fines against companies, relating to foreign exchange and Libor rigging. The amount in fines for individuals rose by £10million.

The lower figure could raise fresh fears that the FCA lacks bite. It has previously been accused of going easy on banks, after it dropped its review into banking culture last year. It also came under fire after deciding to take no further action against HSBC following allegations it helped some customers of its Swiss subsidiary to avoid tax.

Clyde & Co said lower fines could be down to the fallout from scandals coming to an end, as well as a shift to focus on holding individuals to account for misconduct rather than corporations.